PHOTO: REINZ Chief Executive Jen Baird
The Real Estate Institute of New Zealand Reports Increased Activity in June 2023
Renewed Level of Activity Emerges, Says REINZ
REINZ Chief Executive Jen Baird notes that June is typically a slower month for the property market, but this year has seen a rise in sales counts and a hesitancy from sellers to list their properties.
Increase in Sales Counts Compared to June 2022
In June 2023, the total number of properties sold across New Zealand reached 5,629, marking a notable increase of 14.6% from the 4,912 properties sold in June 2022. Sales counts in New Zealand, excluding Auckland, experienced an even higher year-on-year growth of 17.4%, rising from 3,203 to 3,761.
Decrease in Properties for Sale
As of June, the total number of properties for sale across New Zealand stood at 24,676, reflecting a 6.1% decrease (1,595 properties) compared to the previous year’s figure of 26,271. Excluding Auckland, the number of properties for sale dropped from 15,820 to 15,655, representing a decrease of 165 properties annually.
Baird explains that the change in the national inventory level, driven by increased sales counts, has resulted in lower levels of new properties entering the market and an uptick in the number of sales being made.
Surpassing Expectations in June 2023
Typically, sales decrease when transitioning from May to June in New Zealand. However, when considering this seasonal trend and applying seasonal adjustments to the sales count figures, the sales in June 2023 exceeded expectations compared to May 2023.
New Listings Experience Decline
Nationally, new property listings saw a year-on-year decrease of 21.2%, dropping from 7,893 to 6,218. Compared to May 2023, there was a 15.5% decrease from 7,359. Excluding Auckland, listings decreased by 19.8% year-on-year, from 4,994 to 4,005.
Baird highlights that salespeople have reported increased activity from first home buyers at open houses, influenced by the easing of LVR restrictions. However, caution remains due to factors such as interest rates, the upcoming election, and the strain caused by the cost of living, which impact decision-making.
Changes in Median Price and Days to Sell
Nationally, the median price for June 2023 experienced an 8.2% year-on-year decrease, amounting to $780,000 compared to $850,000. The average number of days to sell a property in June 2023 increased to 49 days, rising by 4 days from June 2022 and remaining unchanged from May 2023. The West Coast and Tasman regions observed annual increases in median prices, with rises of 8.1% to $400,000 and 7.4% to $800,000, respectively.
Market Pressure and Continuing Transactions
Over the three months leading up to June 2023, there were 15,934 sales, reflecting a 1.2% increase compared to the same period the previous year. A lack of listings and challenges posed by the current economic climate put pressure on the market. Despite predictions of tougher times ahead, property transactions continue as individuals make choices about their living situations.
REINZ House Price Index Shows Annual Decrease
The REINZ House Price Index (HPI) for New Zealand, which tracks the changing value of residential properties nationwide, revealed an annual decrease of -9.0% for New Zealand overall and a -8.0% decrease for New Zealand excluding Auckland.
The full data sets are available by clicking the links below.
CLICK HERE for the June press release
CLICK HERE for the full property report
CLICK HERE for the HPI report